Gold slides under generally subdued market conditions
Saxo Bank says gold now getting ‘directional input’ from oil 

(USAGOLD – 4/21/2022) – Gold slid further this morning under generally subdued conditions in most markets. It is down $10 at $1950. Silver is down 40¢ at $24.88. The downtrend of the past few days aside, Saxo Bank’s Ole Hansen sees gold’s performance thus far this year (+8%) as “impressive” against the backdrop of rising yields and a firmer U.S. dollar. He believes its strength has to do with investors seeking safe haven from multiple uncertainties present long before the Ukraine war began – trends now exacerbated by the conflict.

“…The actual impact of sharply higher prices of everything,” he says in a report released yesterday, “is now increasingly being felt across the world. In response to this investors are increasingly waking up to the fact that the good years which delivered strong equity returns and stable yields are over. … Instead of real yields, we have increasingly seen gold take some of its directional input from crude oil, a development that makes perfect sense. The ebb and flow of the oil price impacts inflation through refined products such as diesel and gasoline while its strength or weakness also tell us something about the level of geopolitical risks in the system.”

Chart courtesy of TradingEconomics.com